SoftwareONE Presentation, ITAM Review Microsoft Seminar, New York Oct 21 2015

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Kevin SuckowSoftwareONE, Inc

How to Optimize your Microsoft Investments

without Hurting Yourself

Microsoft Licensing Seminar, New York, October 21st 2015

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Microsoft Investment Challenges

• Microsoft 2015 product releases makesgood argument for non-renewal BUT manyproduct rights needed for mobility andvirtualization requires active Software Assurance.

• Microsoft very aggressive with Office365,Azure, and other cloud offerings even for customers with no cloud strategy / plans

• All or Nothing thinking.

• Fear. Customers often fear being audited or cost of rebuying licenses.

• Administration. Maximizing cost optimization often increases administration.


Immediate Short Term Midterm

Microsoft Licensing Workstream (T-11 Months)

Commercial Analysis

Demand Management – Microsoft Strategy Workshops

Future DesktopFuture

Workplace Services

Future Datacenter

Business Discovery

ProcurementSAM

IT

Ongoing

Contract Design

License Entitlement

License AssetsSoftware Discovery

Discovery and Asset Performance – SAM ServicesInfrastructure

DiscoveryOptimum Asset

Assignment

Contract Execution

Operations Process

Technology Validation – Technology Solutions Division

Solution Design Implementation Planning

Solution Assessment

Microsoft Roadmap

Negotiation

Toolset Evaluation Risk Profile

Software Lifecycle

Assessment

Discovery and Asset Performance – SAM Services

Deployment

ROI Execution

Additional license

Purchases

License Lifecycle Management

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How to Optimize Microsoft spend

• SQL• Understand SQL Licensing In-Depth• Physical vs Virtual instances• Standard vs Enterprise assessment• Cluster / Failover architecture

• Office365 • Are/When you going to Office365?• What features are needed & when?• User profiling• Add-on vs USL License Types

• Office • Standard vs Pro assessment• Do you need Roaming Use Rights?• Do you need Office Mobile?• Office Web Apps?

• Windows Desktop O/S• Using Enterprise Edition or MDOP

features? • Roaming use rights – VDI not server session virtualization


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How to Optimize Microsoft spend

• EA• Product Mix (not all or nothing)• Initial order vs TUP pricing• Perpetual vs Subscription

• SCE (Be careful!)• 100% Footprint: Legacy/Compliance• No True Down allowance • CIS bonds System Center to all Win

Servers• Azure annual minimum = $1,200

• MPSA• Pay as you go / no 100%• SA not required• Limited/no discounting• Includes Cloud options• Indirect Channel model


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Microsoft Reseller Channel

ITAM Review Microsoft Seminar, New York, October 21st 2015

• Roughly 9 in US – recent consolidations• Enterprise Agreements

• Fees dropped dramatically • VERY LOW fees on level C/D• Higher fees for Net New EAs• Higher fees for On-Time Renewal (if same LSP as prior EA >90 days)• Higher fees for On-Time True Up

• Fees Shifted to “Partner of Record” on Cloud consumption/usage

• Planning Services Days (SA Benefits) pay little – many partners use to subsidizebut not fully pay for engagements

• MPSA• LSP sets margin on transaction (low)• Some local incentives

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Example


Microsoft Excel Worksheet

Option Qty SpendOption 1: 100% O365 E3 via EA 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Total

E3 2500 2500 2500 2500 2500 2500 $ 582,000 $ 582,000 $ 582,000 $ 582,000 $ 582,000 $ 582,000

3,492,000

Totals 1,746,000

3,492,000

Option 2: 100% O365 E3 via MPSA

E3 300 2500 2500 2500 2500 2500 $ 62,769 $ 523,077 $ 523,077 $ 523,077 $ 523,077 $ 523,077

2,678,154

Totals 1,108,923

2,678,154

Option 3: Office Pro L + O365 E3/E1 Mix

Office Pro 2016 (L only) 1600 600 $ 664,704 $ 249,264

913,968

E3 300 300 300 300 300 2500 $ 62,769 $ 62,769 $ 62,769 $ 62,769 $ 62,769 $ 523,077

836,923

E1 2200 2200 2200 2200 $ 184,123 $ 184,123 $ 184,123 $ 184,123

736,492

1,470,522

2,487,383

Option 4: Office Pro L + Exchange Plan

Office Pro 2015 (L only) 900 1600 2500 $ 373,896 $ 664,704 $1,038,600

2,077,200

Exchange Online 2500 2500 2500 2500 2500 2500 $ 88,000 $ 88,000 $ 88,000 $ 88,000 $ 88,000 $ 88,000

528,000 1,302,600

2,605,200

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Call To Action


• Start EARLY! 11 months from expiration is optimal.• Do a SQL Assessment - #1 area of Microsoft cost impact• Determine MS Cloud Strategy (O365/EMS/Azure)

• Plans• Timing• User profiling

• Windows Desktop O/S - Do you need SA?• Do not renew Exchange / Lync / Sharepoint servers if moving to O365

(unless hybrid model for 4+ years)• Be open to all licensing programs – EA not only way!

Pointers:• Do not add Office365 during term of agreement • Negotiate in renewal for all relevant plans so not burned later• EA discounts apply to initial order vs TUP (add’l concession)• EA discounts will be more difficult <1,000 users in 2016+• Azure commit under EA can be reduced to zero within 30 days prior to Anniv.• Bidding LSPs not as important as licensing advisor

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Thank You

Questions?
